Inter-American Development Bank (IDB)
Private Sector Operations

WASHINGTON

The Inter-American Development Bank (IDB) Group is a Multilateral Development Bank established in 1959 to help accelerate economic and social development in Latin America and the Caribbean. The IDB private sector program helps meet the growing demand for capital to support private sector infrastructure and capital market initiatives in Latin America and the Caribbean.

Eligibility: To be eligible for IDB support, sponsors should seek to develop a private infrastructure project, or expand an existing enterprise that provides infrastructure services in Latin America or the Caribbean. Projects must be located in an IDB borrowing member country and be majority-controlled by a firm from a member country. The borrower must be a majority private sector company. Projects must clearly benefit the host country with priority given to projects that provide basic services, generate employment, and utilize the human, financial, and material resources of member countries. Projects must demonstrate financial and technical viability and must comply with the environmental and social requirements of the IDB and host country.

Types of Projects Funded: IDB focuses it's support on infrastructure projects including energy, water and sanitation, transportation, and communications.

For examples of projects funded, see:
http://www.iadb.org/pri/english/dbase/dbase.cfm

Financial Instruments:

Finance: The IDB can provide loans on both a corporate finance and project finance basis. Maturities are generally set for 8-15 years although terms of up to 20 years are available in specific circumstances. The IDB can lend up to 25% of total project cost, to a value of $USD 75 million. For projects located in a pre-specified range of countries-typically smaller economies with limited market access-the IDB provides support for up to 40 percent of project costs. Interest rates are determined based on market rates. For more information on financing products, see:
http://www.iadb.org/pri/english/products/products.htm

Political Risk and Credit Guarantees: The IDB offers a variety of political risk products covering up to 50% of project cost or $USD 150 million. Investors can acquire insurance against breach of contract (by government), currency convertibility and transferability guarantees, and other political risks. The IDB can also provide credit guarantees of up to $USD 75 million or 25% of project cost. For more information on guarantee products, see:
http://www.iadb.org/pri/english/products/cprg.htm

How to Apply for Financing: Clients should contact the IDB Private Sector Department to discuss their proposal in detail. There is no standard application process for IDB private sector financing. Prospective borrowers interested in requesting project funding will be asked to provide a description of the project, ownership structure, financial structure, business plan, feasibility studies, environmental, social, and health aspects, and details on the positive development impact of the project.

For more information on the application process, see:
http://www.iadb.org/pri/english/work/app_process.htm

For a list of contacts, see:
http://www.iadb.org/pri/english/contact.htm